Financial Instrument Valuation for Start-up
In the dynamic landscape of start-up companies, Valtech Valuation stands out by offering comprehensive financial instrument valuations. These valuations are crucial for audit reviews and serve as a reference for future investment rounds or pre-IPO preparations.
Start-ups often juggle various types of investments, such as convertible bonds, preference shares, and employee stock options. Valuing these instruments is no simple task due to their intricate terms and conditions, which include different maturity dates, accrued interest, and conversion and liquidation preferences. These complexities can sometimes lead to interactions that affect each other.
A key aspect of these valuations is understanding the two primary proceed distribution mechanisms: full participating and simple participating. In a full participating scenario, the remaining proceeds after the liquidation preference amount are distributed pro rata among both preferred and ordinary shareholders. Conversely, in a simple participating scenario, ordinary shareholders can catch up by receiving an amount equal to what was paid to the preference shareholders.
Why Choose Valtech in Your Valuation
While the terms and conditions are outlined in shareholder agreements, interpretations can vary between management and auditors. This is where Valtech Valuation steps in, striving to balance these perspectives and facilitate smooth communication to deliver the best valuation results.
By navigating these complexities, Valtech Valuation ensures that start-ups are well-prepared for their financial future, providing clarity and confidence to all stakeholders involved.
About Valtech Valuation
Valtech Valuation is a professional valuation firm accredited with ISO-9001 in valuation advisory services. The firm is renowned for its expertise in advanced valuation techniques, customized valuation models, data-driven insights, and adherence to compliance and reporting standards. The firm has a solid track record in valuation advisory for listed companies, private equity, fund managers, and financial institutions. Valtech’s qualified team comprises members with PhDs, CPA (HKICPA), CFA, Chartered Valuation Surveyors of the Royal Institution of Chartered Surveyors, and valuers accredited with Business Valuation (ABV) by AICPA and CVA qualifications in Singapore. Valtech continues to expand into more markets by leveraging its valuation platform and recruiting local experts.
